MGM Resorts International (MGM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,910,590 | 8,154,690 | 6,416,180 | 5,950,660 | 4,007,690 |
| Total current liabilities | US$ in thousands | 3,126,070 | 4,515,890 | 3,442,260 | 1,856,580 | 3,191,420 |
| Current ratio | 1.57 | 1.81 | 1.86 | 3.21 | 1.26 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,910,590K ÷ $3,126,070K
= 1.57
The current ratio of MGM Resorts International has exhibited variations over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
In 2023, the current ratio was 1.57, indicating that for every dollar of current liabilities, the company had $1.57 in current assets. This ratio has decreased compared to the previous years, suggesting a potential weakening in the company's ability to cover its short-term obligations.
The ratio was highest in 2020 at 3.21, indicating a strong liquidity position where the company had significantly more current assets than current liabilities. This could indicate effective management of working capital during that period.
Conversely, in 2019, the current ratio was 1.26, indicating a lower ability to cover short-term liabilities with current assets. This may have posed liquidity challenges for the company in that year.
Overall, while the current ratio has fluctuated, it is important for investors and stakeholders to monitor this ratio to assess MGM Resorts International's short-term liquidity position and its ability to meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2023